"Survivorship Bias" refers to the fact that
A) those analysts who manage to become highly visible--e.g., by getting interviews on talk shows--are more likely to survive and thrive in the industry.
B) it is more likely that a company will remain in existence if it has a large bankroll to support it through economic downturns.
C) the investments industry is high-stress, and few investment managers last more than 10 to 15 years.
D) poorer performing mutual funds disappear, so that when average returns are calculated, they are based on the funds that remain, which causes the results to be upward-biased.
Correct Answer:
Verified
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